(Solved): A company is considering constructing a plant to manufacture a proposed new product. The land costs ...

A company is considering constructing a plant to manufacture a proposed new product. The land costs $\$350,000$, the building costs $\$700,000$, the equipment costs $\$250,000$, and $\$80,000$ additional working capital is required. It is expected that the product will result in sales of $\$750,000$ per year for 8 years, at which time the land can be sold for $\$450,000$, the building for $\$350,000$, and the equipment for $\$60,000$. All of the working capital would be recovered at the EOY 8 . The annual expenses for labor, materials, and all other items are estimated to total $\$500,000$. If the company requires a MARR of $16\%$ per year on projects of comparable risk, determine if it should invest in the new product line. Use the AW method. Click the icon to view the interest and annuity table for discrete compounding when the MARR is $16\%$ per year. The AW is $\$$. (Round to the nearest dollar.)